#3: Create a table showing the payment of a mortgage of $207,000 month by month. Create columns for: Time (in years) - Interest (for that month) Payment (always the same value) Payment against principal Remaining Principal The mortgage is to last 37 years, and the nominal interest rate is 4.99% - - (a) What is the monthly payment? (b) What is the interest paid at the end of the 9th month? (c) How much of the principal is paid down by the payment made at the end of the 22nd month? (d) The first time that the portion of a monthly payment that is paying down the principal will be larger than the portion paying interest will occur at the end of month number ?
#3: Create a table showing the payment of a mortgage of $207,000 month by month. Create columns for: Time (in years) - Interest (for that month) Payment (always the same value) Payment against principal Remaining Principal The mortgage is to last 37 years, and the nominal interest rate is 4.99% - - (a) What is the monthly payment? (b) What is the interest paid at the end of the 9th month? (c) How much of the principal is paid down by the payment made at the end of the 22nd month? (d) The first time that the portion of a monthly payment that is paying down the principal will be larger than the portion paying interest will occur at the end of month number ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:#3: Create a table showing the payment of a mortgage of $207,000 month by month. Create columns for:
Time (in years)
- Interest (for that month)
- Payment (always the same value)
- Payment against principal
- Remaining Principal
The mortgage is to last 37 years, and the nominal interest rate is 4.99%
(a) What is the monthly payment?
(b) What is the interest paid at the end of the 9th month?
(c) How much of the principal is paid down by the payment made at the end of the 22nd month?
(d) The first time that the portion of a monthly payment that is paying down the principal will be larger than the
portion paying interest will occur at the end of month number
?
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